STRONG final quarter trading across its divisions has set Bradford-based specialist lender Provident Financial on course for a 2015 profit before tax and other items of around £291 million - in line with market expectations.

In a trading update, Provident said its traditional lending through local agents in its consumer credit division was expected to report marginally higher profits than in 2014 following its transition into a smaller but leaner, better-quality, modern business focused on returns. Customer numbers were reduced by 11 per cent with receivables seven per cent lower.

Sales through the seasonal peak were marginally above the fourth quarter of last year, with continued modest improvements in demand and customer confidence.The division's performance was also boosted by a continued strong collections performance and an increase in revenue yield.

The Vanquis Bank credit card operation continued to deliver strong growth and good margins through the fourth quarter. A drive to increase customer numbers generated record bookings of 433,000 against 430,000 in 2014, resulting in UK customer numbers rising by 9.8 per cent to 1,42 million. Income rose by an average of 19 per cent overe the year.

The online lending brand Satsuma continued to develop and refine its underwriting standards, resulting in a significant tightening of credit from October which reduced the conversion rate by five per cent to around ten per cent and impacted growth in the fourth quarter.

Customer numbers and receivables ended 2015 at 49,000 with receivables at £12.1million compared with 53,000 and £13.8 million in September. An expected step-change in the credit quality of new business had materialised and there was a seeing a good flow of further lending to established customers.

Demand for Satsuma loans is strong and the business remains on track to produce a modest profit contribution in 2016.

The Moneybarn car finance business had boosted new business volumes in 2015 by 69 per cent , helped by access to the group's funding since its acquisition in August 2014 and and extended product offering.

Fourth quarter growth was 28 per cent compared with a year earlier after it became part of Provident. By the year end Moneybarn's customer numbers grew from 22,000 to were 31,000 over the year with receivables close to £220 million - 45 per cent up on the previous year.

Peter Crook, chief executive, said:"I am pleased to tell you that the group is expected to report 2015 results in line with market expectations. All our businesses have traded well through the final quarter of the year and our funding position remains strong."

Provident will announce its 2015 results on February 23.